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We need more from Dr Majoro to stop the bleeding

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WHEN one looks at the qualifications and experience of the man running Lesotho’s economy, Dr Moeketsi Majoro, we can only come to one conclusion – that he is the best man for the job.
Yet our economy is sinking.
Last Thursday, Dr Majoro made a stunning pronouncement on the status of the government purse. His statement came at a time of social and economic crisis unparalleled in the history of Lesotho.

Dr Majoro knows what ought to happen in order to stimulate our economic outlook. However, as I have argued in other forums, he is not the man who is not supposed to be the man taking care of the public purse.
That is precisely because he is all talk and no action. He cannot enforce his own austerity programmes and rein in his government colleagues who are leading lavish lifestyles off the public funds.
In my humble opinion, Dr Tim Thahane was a better finance minister. For one Dr Thahane managed to run a balanced budget for most of his tenure as Minister of Finance and a surplus in one of the fiscal years.

Dr Majoro appears to be out of his depth and I think we are ignoring subtle signs that he needs to be rescued.
The high spending by the government executives tops the agenda. Government reserves have been depleted and revenue streams keep shrinking. These problems are exacerbated by high levels of unemployment, especially among the youths, utter lack of private investment (reaching the highest shrunk in two decades), the distress in the agriculture sector and a construction industry which is among biggest employers of the workforce is in the doldrums.

The rest of the service sector is in the slow lane. Sector after sector of the economy is in distress. The economic growth rate has been declining. This is the predicament Lesotho finds itself in.
Dr Majoro has had two successive budget speeches. The two were rather a platform to appeal or charm the voters. Revenues and reserve streams continue declining and foreign investment remains subdued. The consumer confidence is at its lowest. A dwindling tax base remains the government’s sole revenue stream.
Given the calibre of our finance minister, one expects him to have focused on the current situation and to have taken pre-emptive measures. Instead what we received were alarmist statements on the state of our economy. The statements caused needless worry and panic.

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I wonder if the minister accurately evaluated the detrimental consequences of his speech on the economy.
In his statement the minister said the government has only secured funds for the next two months to pay civil servants. This statement obviously creates panic on the market and compels the market to exercise conservative measures which may include restricted lending.
I would like to believe that the minister’s statement lacked in terms of ounce of creativity, innovation, political leadership and wisdom. As an economist I would have expected him to have accurately evaluated the consequence of such a statement.

It’s quite evident that fundamentally, our economy is struggling due to poor investment decisions, flight of capital, unemployment, income disparities, ruthless and irrational spending, a shortage of revenue-generating mechanisms, lack of leadership wisdom, a dysfunctional political system and endemic corruption.
The excessive spending by the executive has worsened matters.

As Finance Minister, Dr Majoro is entrusted with responsibility to formulate policies that are meant to curb all economic impediments. He is a custodian of procurement policy.
The question is: Why doesn’t the minister develop a policy that stops the brewing company in Lesotho to import bottled water and ice?
If a Good Samaritan were to inject M100 billion into our economy today, I am sure 95 percent of the injected amount will be realised in the economies of China and South Africa within a split of a second!

Why can’t he stop Minister Phori and Minister Mapesela when they are messing up our ability to earn at least M480 million from the sale of wool and mohair? This is a M480 million hole in our reserves under the watch of the Minister of Finance?
Why can’t Dr. Majoro develop a procurement policy that will ensure protection of local enterprise? Why can’t he force all foreign companies registered locally to bank and open offices in the country?

When analysed correctly, Lesotho’s economy is not explained by irresponsible expenditure alone; it is also explained by the declining revenue. Against this backdrop, a focus on cost-cutting alone is rather a futile exercise that demonstrates a high level of executive disengagement with reality.
We need to focus on establishing policies that will ensure protection of local enterprise and prohibition of capital flight.
Over the years, the government has witnessed a decline in SACU revenue and the tax revenue. The two were at the cornerstone of our economy but clearly no radical and proactive considerations were made to arrest this devastating economic situation.

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The austerity measures the Minister of Finance is proposing is a repeat of what he proposed initially but dismally failed to implement. Is this a case of leadership through lip service? Indeed Dr Majoro has failed to implement all austerity measures he tabled in Parliament two years ago. Last weekend I saw a complete contrast of what he suggested pertaining to the use of government vehicles after office hours and weekends.

Dr Majoro’s austerity measures should be handled with care lest this brings more damage to the government’s reputation.
On the other hand one expects, the minister to place emphasis on developing policies that will ensure increased revenues streams and optimise capital circulation rather than placing focus only on expenditure cuts.

Dr Majoro essentially has several options at his disposal for stimulating the economy:
l Develop policy that seeks to influence the means of production. Adopt measures such as low-interest loans, force local companies (including mining and manufacturing companies) to bank in Lesotho. He must give tax incentives to those that comply and punish bad conduct or those that don’t comply heavily.
l Secondly, develop policy that will ensure that Governments stimulates private consumption by allowing citizens to hold onto more of their money.

l Develop policy that protects locally manufactured goods and services. Let government itself set an example by buying locally produced goods and services.
l Develop an understanding that borrowed money should be spent on direct revenue generating investments; social projects should be financed through direct government funds.

For instance, in monetary terms what will be the Return on Investment for the Marakabei to Monontša road, the Mpiti to Sehlabathebe roads? How long will the two roads take to break even? How will the loan be paid back?

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We cannot afford to rob Paul and pay Peter. The Minister of Finance says we must increase the public debt by approaching capital markets. This debt has to be serviced at a high interest rate.
This is a dangerous direction we are taking as a country. Approaching capital markets will only increase the national debt and impose a higher financial burden on future generations. Robbing Paul to pay Peter could end up consuming vast amounts of money without having any significant effects on the economy.
Furthermore, he must facilitate a proposal to cut the number of government ministries. These in a true sense should be reduced by combining those doing similar work.
Most importantly, the minister must immediately eradicate the captured leadership presiding over organisations responsible for our natural resources. Take a closer look into the Lesotho mines. This is the environment where the wealth of Lesotho gets looted without mercy.

Please be warned that cutting salaries of civil servants and teachers will instigate unnecessary industrial unrest, social chaos and increased poverty. As the Minister of Finance, he must facilitate a policy that will dissuade the government from making unworthy political appointments.
The government should tackle high levels corruption and political violence. Majoro must encourage and facilitate clean governance and sound management of public property and public funds.
When one has a clearer idea and vision of what the government should and can do it becomes easier to make decisions on how to revive the economy in an effective manner. The most obvious of these are through agriculture, tourism, infrastructure and security coupled with adherence to the rule of law.

We must develop a policy that ensures protection of arable land. Agriculture still dominates our economy but is working well below its productive capacity. It is a sad irony that whilst agriculture plays such a major role Lesotho has slipped into being a major food deficit nation for many of its basic products. Any attempt to return agriculture to health must be based on realism and selectivity.

Tourism has enormous growth potential and the return on any additional investment in it whether it be facilities or promotion is very high. But would a recycled historical minister help?
Those, coupled with enormous devotion to upgrading our infrastructure in a long run such as the renewal energy, railways, all roads, power supply and telecommunications would nurture the economy back to health again.#

The government must impose time limits on its intervention. Once the economy regains momentum, it is up to the government to quickly repay the debts it incurred during the crisis. Otherwise the state runs the risk of remaining permanently in the red.

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Dr Majoro says paying suppliers for their services and goods rendered to government will stimulate the economy. I don’t believe that the measure will be sufficient to stop the downward spiral of a sinking economy. Part of the reason, I wish to put forward, is that a portion of the government funds will flow into payment of services and goods that were already supplied anyway.
Suppliers took loans from banks and loan sharks to do that work. Besides, the package is simply too small to be capable of halting the downward trend.

By:Ramahooana matlosa

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Insight

Down in the Dump: Conclusion

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I closed last week by recording the dreadful news that trashy Trump had been elected called to mind WB Yeats’s poem “The Second Coming.” This is the poem whose opening lines gave Chinua Achebe the phrase “things fall apart.”

Yeats observes “Things fall apart, the centre cannot hold / Mere anarchy is loosed upon the world.”

It was written in 1919 and controversially uses Christian imagery relating to the Apocalypse and the Second Coming to reflect on the atmosphere in Europe following the slaughter of the First World War and the devastating flu epidemic that followed this.

It also reflects on the Irish War of Independence against British rule.

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In lines that I can now read as if applying to the recent American election, Yeats mourns: “The best lack all conviction, while the worst / Are full of passionate intensity.”

And then I can visualise Trump in the poem’s closing lines: “What rough beast is this, its hour come round at last, / Slouching towards Bethlehem to be born?”

Trump is certainly a rough beast and isn’t the choice of verb, slouching, just perfect? For a non-allegorical account of the threat posed by the Dump, I can’t do better than to quote (as I often do) that fine South African political journalist, Will Shoki. In his words: “Trump’s administration simply won’t care about Palestinians, about the DRC, about the Sudanese.

It will be indifferent to the plight of the downtrodden and the oppressed, who will be portrayed as weak and pathetic. And it will give carte blanche [that is, free rein] to despotism and tyranny everywhere.

Not even social media, that once revered third-space we associated with subversion and revolution in the first quarter of the 21st century can save us because Silicon Valley is in Trump’s back pocket.”

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So what follows the triumph of the Dump? We can’t just sit down and moan and bemoan. In a more recent piece of hers than the one I quoted last week, Rebecca Solnit has observed: “Authoritarians like Trump love fear, defeatism, surrender. Do not give them what they want . . . We must lay up supplies of love, care, trust, community and resolve — so we may resist the storm.”

Katt Lissard tells me that on November 7th following the confirmation of the election result, in the daytime and well into the evening in Manhattan, New York, there was a large demonstration in support of the immigrants Trump despises.

And a recent piece by Natasha Lennard gives us courage in its title “The Answer to Trump’s Victory is Radical Action.”

So, my Basotho readers, how about the peaceful bearing of some placards in front of the US Embassy in Maseru? Because the Dump doesn’t like you guys and gals one little bit.

One last morsel. I had intended to end this piece with the above call to action, but can’t resist quoting the following comment from the New York Times of November 13th on Trump’s plans to appoint his ministers.

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I’m not sure a satirical gibe was intended (the clue is in the repeated use of the word “defence”), but it made me guffaw nonetheless. “Trump will nominate Pete Hegseth, a Fox News host with no government experience, as his defence secretary. Hegseth has often defended Trump on TV.” You see, it’s all about the Dump.

  • Chris Dunton is a former Professor of English and Dean of Humanities at the National University of Lesotho.

 

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A question of personal gain

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Recently, an audio recording featuring the distressed MP for Thaba-Bosiu Constituency, Joseph Malebaleba, circulated on social media. The MP appears to have spent a sleepless night, struggling with the situation in which he and his associates from the Revolution for Prosperity (RFP) party were denied a school feeding tender valued at M250 million per annum.

In 2022, Lesotho’s political landscape underwent a significant shift with the emergence of the RFP led by some of the country’s wealthiest individuals. Among them was Samuel Ntsokoane Matekane, arguably one of the richest people in Lesotho, who took the helm as the party’s leader and ultimately, the Prime Minister of Lesotho.

The RFP’s victory in the general election raised eyebrows, and their subsequent actions have sparked concerns about the motivations behind their involvement in politics.

In an interview with an American broadcasting network just after he won the elections, Matekane made a striking statement, proclaiming that he would run Lesotho exactly as he runs his business.

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At first glance, many thought he was joking, but as time has shown, his words were far from an idle threat. In the business world, the primary goal is to maximize profits, and it appears that the RFP is adopting a similar approach to governance.

Behind the scenes, alarming developments have been unfolding. A communication from an RFP WhatsApp group revealed a disturbing request from the Minister of Communications, Nthati Moorosi, who asked if anyone in the group had a construction business and could inbox her.

This raises questions about the RFP’s focus on using government resources to benefit their own business interests.

The government has been embroiled in a series of scandals that have raised serious concerns about the ethical conduct of its officials. Recent reports have revealed shocking incidents of misuse of public funds and conflicts of interest among key government figures.

Over the past two years, the RFP has been accused of awarding government contracts to companies affiliated with their members, further solidifying concerns about their self-serving agenda. For instance, vehicles purchased for the police were allegedly sourced from suppliers connected to a Minister’s son and MP.

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The MP for Peka, Mohopoli Monokoane, was found to have hijacked fertiliser intended to support impoverished farmers, diverting crucial resources away from those in need for personal gain.

Such actions not only betray the trust of the public but also have a direct impact on the livelihoods of vulnerable communities. Monokoane appeared before the courts of law this week.

While farmers voice their concerns regarding fertiliser shortages, it seems that Bishop Teboho Ramela of St. Paul African Apostolic Church, who is also a businessman, is allegedly involved in a corrupt deal concerning a M10 million fertilizer allocation, benefiting from connections with wealthy individuals in government.

The procurement of fertiliser appears to be mired in controversy; recall that the Minister of Agriculture, Food Security and Nutrition, Thabo Mofosi, was also implicated in the M43 million tender.

The renovation of government buildings with elaborate lighting systems was contracted to a company owned by the son of an MP. The RFP’s enthusiasm for infrastructure development, specifically road construction and maintenance, is also tainted by self-interest, as they have companies capable of performing these tasks and supplying the necessary materials, such as asphalt.

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Minister Moteane finds himself in a compromising situation regarding a lucrative M100 million airport tender that was awarded to his former company. Ministers have even gone so far as to award themselves ownership of diamond mines.

Meanwhile, the nation struggles with national identification and passport shortages, which according to my analysis the RFP seems hesitant to address until they can find a way to partner with an international company that will benefit their own interests.

The people of Lesotho are left wondering if their leaders are truly committed to serving the nation or simply lining their own pockets. As the RFP’s grip on power tightens, the consequences for Lesotho’s democracy and economy hang precariously in the balance.

It is imperative that citizens remain vigilant and demand transparency and accountability from their leaders, lest the nation slide further into an era of self-serving governance.

In conclusion, the RFP’s dominance has raised serious concerns about the motives behind their involvement in politics. The apparent prioritisation of personal profit over public welfare has sparked widespread disillusionment and mistrust among the population.

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As Lesotho navigates this critical juncture, it is essential that its leaders are held accountable for their actions and that the nation’s best interests are placed above those of individuals.

Only through collective effort and a strong commitment to transparency and accountability can Lesotho ensure a brighter future for all its citizens.

Ramahooana Matlosa

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Down in the Dump: Part One

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Attentive readers will recall that some weeks ago, I scribbled a series of pieces on elections due to be held in the UK, France, South Africa, and the USA. These elections were unusually critical for the well-being of their countries and even that of the world.

The results of the last of these elections are now with us and we are faced with the devastating news that Donald Trump is heading back to the White House.

I can hardly think of worse news to swallow or to equip the world to survive the years ahead.

The Dump, as I call him, is one of the most odious, dangerous, untrustworthy individuals currently inhabiting planet Earth. To cite a few of his demerits: he is a convicted felon; he believes climate change is a hoax; he is a sexist and a racist (one of his former military advisers has gone so far as to describe him as a fascist).

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He is a snuggle buddy of the Russian dictator Vladimir Putin and will probably discontinue aid to Ukraine as it resists invasion by Russia. Western European allies such as France, Germany and the UK are dismayed at his victory, as he holds the principles of democracy and constitutionalism in contempt.

As for Africa, well, he once described it as a “shit country,” so don’t look forward to much support from him.

Readers who spent time at the NUL will remember my dear colleague Katt Lissard who is now back home in New York. She spent some years with us as a Professor specialising in Theatre studies and was the Artistic Director of our international Winter / Summer Institute for Theatre for Development.

Many activists in the USA like Katt, who don’t see themselves as part of the political mainstream, chose to campaign for the Democrats and Kamala Harris in the hope of keeping Trump and the far right out of power. Confronted with the news of Trump’s victory, she sent an email to friends noting this was “just a brief check-in from the incomprehensible USA.”

She then explained: “We’re in shock and the early days of processing, but white supremacy, misogyny and anti-immigrant bias are alive and well and driving the boat here.” So, how do Katt and millions of decent, like-minded Americans plan to weather the storm?

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Katt explained: “We were deeply depressed and deeply furious as it became clear that one of the worst human beings on the planet was going back to the White House, but we are still breathing and know that we will in the days ahead begin to formulate plans and strategies—and not just for heading north across the Canadian border.”

Picking up on that last point, it may well be that many decent Americans might just up and off across the border; Canada had better prepare for an avalanche of applications for residence permits.

And not just from Americans; in, for example, the American university system alone there are many many Africans employed in high positions (Professors and such-like), who must now face the fact they are living in a country whose leader despises them and who may opt to get out.

In her email written to her friends, once the news from hell had been confirmed, Katt quoted a piece by Rebecca Solnit, one of the most exciting writers at work in the USA today (readers may remember that I have previously reviewed two of her books for this newspaper, Whose Story is This? and Recollections of My Non-Existence).

Now Solnit is a feminist and at the heart of her work is a dissection of the way women have been marginalised in the USA (let’s remember that Kamala Harris, the Presidential candidate who lost to Trump, did so partly because so many American males could not bring themselves to vote for a woman.

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I am thinking of the kind of male who invaded the White House when it was announced Trump had lost the 2020 election, bare-chested and wearing cow-horn helmets on their numbskull heads).

Solnit has this to say on our response to the Trump victory: “They want you to feel powerless and to surrender and to let them trample everything and you are not going to let them.

You are not giving up and neither am I. The fact that we cannot save everything does not mean we cannot save anything and everything we can save is worth saving.

You may need to grieve or scream or take time off, but you have a role no matter what, and right now good friends and good principles are worth gathering in.

Remember what you love. Remember what loves you. Remember in this tide of hate what love is.” And then: “A lot of us are going to resist by building solidarity and sanctuary.”

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What is so morale-boosting about Solnit’s piece is not just her vision but also her command of language.
Her writing is so crisp and elegant. Language comes at us at its best, of course, in literature, and when I heard that the Dump was on the move back to the White House, I immediately recalled one of the most startling poems in the English language, “The Second Coming” by the Irish poet WB Yeats.

I’ll kick off with that next week.

To be concluded

Chris Dunton

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